Swola Company reports the following annual cost data for its single product. Normal production level Direct materials Direct labor Variable overhead Fixed overhead 75,000 units $ 1.25 per unit $2.50 per unit $3.75 per unit $300,000 in tota.l This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's income increase or decrease under variable costing? Multiple Choice $187,500 increase $112,500 increase